This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Energy Stocks with Yields Up to 11%

BOSTON ( TheStreet) -- Master limited partnerships, or MLPs, are required to pay hefty quarterly distributions to shareholders in exchange for avoidance of corporate income taxes. That's a boon to investors surrounded by skimpy dividends and bond yields.

MLPs are typically involved in the oil and gas business, specifically exploration, storage and transportation. MLPs offer some of the highest yields in the stock market, but their distributions are taxed differently than dividends. Often, the majority of quarterly payouts are tax-deferred, making MLPs even more attractive income investments. MLP investors receive a K-1 form annually, indicating the tax treatment of the previous four payouts.

Here are 10 MLPs with enormous yields. Each yields between 7.2% and 11%. Although MLPs are more complicated than traditional equities, they have proven to be outstanding income investments and operate reliably profitable businesses, particularly noteworthy in today's sputtering economy. Below, they are ordered by yield, from high to highest.

10. NuStar Energy (NS) terminals, stores and transports petroleum products. Second-quarter net income increased 19% to $99 million, but earnings per share climbed just 3% to $1.43, hurt by a higher share count. Revenue grew 14%. The operating margin rose from 8.5% to 9.1%. NuStar's stock sells for a book value multiple of 1.4 and a sales multiple of 0.9, 64% and 49% discounts to peer averages. Of analysts evaluating NuStar, four, or 29%, rate its stock "buy", eight rate it "hold" and two rank it "sell." A median price target of $61.40 suggests a return of 3.3%.

1 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EXLP $0.00 0.00%
CQP $28.03 -1.16%
EVEP $2.62 2.75%
MMLP $22.58 0.58%
LGCY $2.90 18.37%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs